Kuda Bank Threatens To Close Accounts Engaged In Cryptocurrency Transactions

Kuda Bank has threatened its customers that it would close accounts found to be engaged in the transaction of cryptocurrency.

The bank said it can’t facilitate cryptocurrency transactions because it violates the policy of the Central Bank of Nigeria which regulates all financial institutions in the country.

This came up after multiple complaints on social media about several account cancellations. Kuda Bank, however,  notified customers of its new cryptocurrency position.

The notice read: “In the light of the recent letters and statements issued by the Central Bank of Nigeria concerning transactions relating to cryptocurrency, please note that Kuda Microfinance Bank is not allowed to and does not deal in, or facilitate the trading of, any form of cryptocurrency.

“Consequently, we strongly advise that you do not use your Kuda account for cryptocurrency-related activities so you don’t get into trouble with the law.”

Recall, the CBN had warned commercial banks and all non-banking financial institutions to desist from dealing in cryptocurrencies and other related transactions.

The country’s apex bank further ordered banks to close all the accounts of customers transacting and dealing in Bitcoin immediately.

That was contained in a statement released by the CBN on Friday and read: “The Central Bank of Nigeria’s (CBN) circular of January 12, 2017 ref: FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the public on the risk associated with transactions in cryptocurrency refers.

“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”

Primebusiness.africa gathered Kuda Bank was the first Nigerian bank to gain collaboration with Binance, a popular crypto exchange, and it was a big advocate of cryptocurrency at the time. However, everything changed after the apex bank placed the ban on the transaction of cryptocurrency.